Why maize is a new money-spinner

Why maize is a new money-spinner

Tanzania, Dar es Salaam. Earnings from maize exports jumped by 234 percent in the first eight months of this year.

Official data from the Ministry of Agriculture shows that Tanzania earned Sh325 billion from maize exports from January to August.

This is up from Sh97.55 billion during last year’s corresponding period.

The rise is attributed to a 96 percent increase in export volumes, coupled with a 70.6 percent increase in the unit price.

Last year, a kilogramme of maize fetched an average export price of Sh481.878, while the FoB price per kilogramme was Sh822.53 this year.

Agriculture minister Hussein Bashe told The Citizen that President Samia Suluhu Hassan’s government is investing 50 and 20 percent of the docket’s budget in strengthening irrigation and improving seed multiplication, respectively.

“Her Excellency the President’s aim is to see Tanzania to feed the rest of Africa and the world,” said Mr Bashe, who is also the Nzega Urban MP.

Tabling the Agriculture ministry’s 2022/23 budget proposals in Parliament earlier in the year, Mr Bashe said maize exports increased to 189,277 tonnes worth Sh72.4 billion in 2021, up from 92,825 tonnes worth Sh58.02 billion in 2020.

He said in the 2020/21 season, the country recorded a surplus of 951,504 tonnes of maize after 6.908 million tonnes were produced against demand of 5.957 million tonnes.

The increase in maize exports in tonnes over the years was 85,465 (2019), 82,543 (2020) and 187,185 (2021).

Citing 2022 data from the Tanzania Revenue Authority (TRA), Mr Bashe said Kenya imported 152,449 tonnes of maize from Tanzania followed by South Sudan, which shipped in 8,000 tonnes.

Other countries that imported maize from Tanzania are Rwanda (13,097 tonnes), Sudan (5,000 tonnes), United Arab Emirates (2,940 tonnes), the Democratic Republic of Congo (2,426 tonnes), Burundi (1,828 tonnes) and Uganda (1,175 tonnes).

Mr Bashe said Tanzania’s maize production in tonnes in recent years stood was 6.681 million (2017), 6.273 million (2018), 5.652 million (2019), 6.711 million (2020) and 7.039 million (2021).

“The ministry has managed to secure maize markets in DRC, Kenya, Zimbabwe, Rwanda, Burundi and the Comoros. Warehouses capable of holding 5,000 tonnes and 2,000 tonnes have been leased in Juba, South Sudan, and Lubumbashi in DRC, respectively,” he said.

Mr Bashe added that in 2021/22, the ministry procured 33,600 tonnes of maize from farmers and sold 2,000 tonnes to Kenya’s Grain Industries Limited, earning Sh1.060 billion.

He said the world’s population is projected to reach 8.5 billion and 9.7 billion in 2030 and 2050, respectively. Africa’s population will increase to 1.6 billion and 2.4 billion, respectively.

Tanzania’s population is expected to reach 79 million and 135 million by 2030 and 2050, respectively.

Mr Bashe said according to the Food and Agriculture Organisation’s 2018 report, food demand is slated to increase to 18.8 million tonnes as the world’s food requirements are set to increase by an average of 50 percent.

The food market on the continent is expected to account for $1 trillion in 2030, therefore creating employment in the value chain.

Mr Bashe said food demand is projected to reach 8.797 million tonnes in 2030, including 7.418 tonnes of maize, 1.368 million tonnes of rice and 3.211 million tonnes of cassava.  

“Following the rapid population growth, Tanzania is supposed to prepare as a nation in order to benefit from the business, food security, building sustainable economic growth and strengthen the country’s independence.”

The government, according to Mr Bashe, is expected to mobilise farmers to increase maize production to 7.219 million tonnes in the 2022/23 season, up from 7.039 million tonnes in 2020/21.

He said docket has planned to increase multiplication of improved maize seeds, and strengthening extension services through utilisation of Information Communication Technology (ICT).

“The ministry will also improve access to markets, spearhead the construction of modern warehouses for crop storage, and renovate the existing ones, as well as improve aflatoxin prevention measures in order to meet demands set by domestic and foreign markets.”

The National Food Reserve Agency (NFRA) sold 19,601.141 tonnes of cereals in 2021/22 to provide farmers with a reliable market.

The move also aims at addressing the challenge of inflation that has been behind decline of prices.

Mr Bashe hinted that in 2022/23, NFRA has plans to procure 100,000 tonnes of cereals. The agency will continue the purchasing and selling exercise whenever there is decline in prices in order to protect interests of farmers, preserve and sell the same for price stabilisation.

“NFRA and the Cereals and Other Produce Board (CPB) have been provided with additional funds, increasing their budgets from Sh19 billion in 2020/21 to Sh119 billion in 2021/22,” he said. 

Some 183,045.384 tonnes of maize and millet had been procured by the two institutions by April 2022.

Undertaken measures will provide the country with food security assurance as well as trading the crops in domestic and foreign markets.

Crop production forecasts for 2022/23 show that 32,500 tonnes of maize certified seeds are required in order to meet the 7.219 million tonnes target.

Speaking yesterday, a lecturer at the Sokoine University of Agriculture, Dr Anna Temu, said for sustainability of cereal crops production, Tanzania should harvest rainwater.

“Also, access to fertiliser should be sustainable among farmers as well as quality seeds. Equally, emphasis should be on yellow maize production due to soaring global demand,” he said.

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